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    Hermes Is Determined To Strengthen The Weaker Category And Not To Open Shop Crazily Because Of The Good Market.

    2015/11/16 22:40:00 25

    HermesWeak CategoryBrand Strategy

    This year can be called the worst year of the luxury market after Lehman Brothers went bankrupt.

    According to a recent report by Bain, sales of personal luxury goods such as leather goods, watches and fashion in 2015 are expected to grow by only 1%, down 6% from 2013.

    In such a big environment, Hermes, which looks like selling leather goods, does not decline.

    According to Hermes, the net turnover of the company in the first half of 2015 was 2 billion 300 million euros, which is up by 21% at current exchange rate, even 9% based on fixed exchange rate.

    In addition to the 1% decline in the watch business, Hermes leather goods and harness increased by 14%; clothing and accessories increased by 8%; perfume was 4%; and

    Jewellery

    The overall category of tableware, tableware and household has increased by 12%.

    No matter where the market is, Hermes will devote energy to customize the product that meets local characteristics.

    For example, if you walk into the flagship store in Miami, you can find a rare leather handbag that is richer than any Hermes store in the world. This is the response to the local market demand.

    Dumas said that relying on tourists is unreliable, and there are too many uncontrollable factors. Therefore, it is very important to have connections with local customers.

    "We don't have a marketing department.

    We provide enough choices to let customers decide what to sell well, and then we can see which products are attractive.

    Obviously, we see that our fashion business is excellent and our shoes are strong.

    We believe that this fashion house has great potential. "

    Dumas told BoF, he said that geographical factors and "handicrafts" are the two pillars of Hermes, and that this is the reason why brands can be satisfied.

    Unlike most luxury brands in the Asian market dominated by China, the retail expansion of Hermes is stable and geographically balanced. After the outbreak of the global financial crisis, the ensuing recession has affected the luxury consumption around the world, but the pace of Hermes opening has not been disrupted.

    Opened in 2014.

    Miami

    Flagship store as an example, as the third flagship store in the United States, it is positioned to "seize the affluent Latin American group who came to Miami to consume".

    This is consistent with the expansion of Hermes in the United States. In the past three years, Hermes has extended and upgraded 8 of the 28 stores in the United States, and opened an independent perfume shop in Brookfield Place, Manhattan, this year.

    For in

    financial crisis

    Is it wise to invest in the US market? Robert Chavez, the chief executive of Hermes, said that the US economy has a solid foundation on the macro level. Compared with the past, people today "want to buy things that can be used for a long time".

    Perhaps because of this, Hermes can still maintain enough flexibility in the period of luxury failure.

    Although analyst Luca Solca said in a recent report that Hermes's growth over the years has been "probably close to the peak of its profits", Dumas still told BoF that the company's plan is long-term, and that keeping balance is the reason why Hermes continues to invest in mature markets such as the US, Europe and Japan.

    "We will not say that we have invested heavily in a new country, but we are discounting it in another country," Dumas explained.

    In the case of Japan, where tourism and exchange rates have led to the expansion of luxury brand shops, Hermes has opened stores in Nagoya and Tokyo as early as the weakness of the yen.

    "The depreciation of the yen has made the tourist economy profitable," Dumas said. "But even without tourists, we still have some good growth."

    Hermes's sales in Japan increased by 20% in the first half of this year.


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